Traditional gold investing market drivers include inflation rate and physical demand for gold.
Many investors diversify their holding to include gold because the rates of return in most periods do not have correlation to stock market returns, where most investors have a bulk of their investments.
Gold also benefits from turbulent stock or bond market conditions, for many reasons, as a stable, safe haven for keeping investments, partly because gold investments are typically guaranteed with the physical commodity, which has a stable demand and limited supply.
That is also partly why many countries guaranteed their paper money's buying power in terms of gold, and some still do.
However, even if gold has been a good investment market for stable returns in the past, the future returns may not reflect that past.
For many reasons the physical demand side of gold market is less than for most commodity metals, but there is still demand for gold in that regard that affects gold's market price.
For example, some analysts quote, from time to time, gold demand patterns in India, where gold is very popular in jewelery, as one of the drivers for gold drivers, at least when explaining short terms gold price fluctuations.
Gold Investments - Making an Investment
The market for gold is one of the oldest ones, and you can get into it through most investment brokers that operate on the commodities market.
Due to financial innovation, you can also purchase funds that reflect the underlying value of a commodity.
The difference between buying stocks in such a fund vs purchasing a commodity contract is that you operate in the stock market, with typically lower transaction fees.
From gold investing page to Investments Guide index